After closing last week on a bullish note, Chainlink (LINK) price action shows further potential for an upsurge soon. Furthermore, the Chainlink network has a working business model that has already attracted notable institutional investors and web3 developers in the industry to tap into its products.
The reputation earned over the past few years is expected to help LINK price rally parabolically in this crypto bull cycle. Nonetheless, the short-term LINK price action is still largely influenced by Bitcoin (BTC), and Ethereum (ETH). Moreover, the crypto cash rotation from Bitcoin has been favoring altcoins with impressive development track records and vibrant online communities.
Chainlink Whales on a Buying Spree
In anticipation of an inevitable LINK upsurge, crypto whales have recently been spotted on a buying spree. According to on-chain data analysis provided by Lookonchain, a mysterious crypto whale has accumulated LINK coins from the Binance cryptocurrency exchange in the past few days.
Since the beginning of this week, the mysterious crypto whale has withdrawn 2.237 million LINK coins worth approximately $42.38 million from Binance. The heightened LINK demand from crypto whales follows the notable surge in transaction volume since August 2023, whereby more than 72 million LINK worth about $1.3 billion were transacted.
Is LINK’s Latest Breakout a Bull Trap?
After consolidating between $12.2 and $17.5 from November last year until the end of January, LINK’s price is well positioned to continue with the bullish outlook in the coming weeks.
However, Chainlink bulls must first overcome the psychological resistance range between $19.4 and $20.03, which would yield a near 50 percent rally toward $30.
Furthermore, the weekly Relative Strength Index (RSI) is attempting to rally beyond the 70 level again, which signals the bulls are in control.